RTP robotic surgery developer TransEnterix's stock up as Johnson & Johnson talks potential acquisitions
Jason deBruyn Staff Writer Triangle Business Journal
Jan 27, 2016, 5:36pm EST Updated Jan 27, 2016, 6:08pm EST
Alex Gorsky, the CEO and chairman of Johnson & Johnson, made only few, non-specific comments about potential acquisitions, yet that was enough to boost the stock of Raleigh-based TransEnterix (Nasdaq: TRXC) by nearly 30 percent.
During a conference call to discuss fourth quarter results, Gorsky talked at different times about potential acquisitions, specifically in medical devices. TransEnterix develops and markets surgical robots – and investors quickly jumped on its stock, sending shares to close at $2.65, an increase of 27 percent on the day. At that price, TransEnterix has a market value of $265 million.
TransEnterix, Inc., SurgiBot System
TBJ file photo
___________________________-
“… (O)ur recent acquisition of Coherex Medical in the area of atrial fibrillation and the surgical robotics collaboration with Verily, formerly Google Life Sciences, are examples of the type of focused and strategic investments that you will see us make more of in the future,” Gorsky said on the conference call. “… (I)f you look at us historically, really over about any timeframe, 20 years, 10 years, what you see is about half of our growth being generated from organic innovation platforms and about 50 percent being generated vis-a-vis M&A.”
In June, TransEnterix filed an application to market its next-generation surgical robot called SurgiBot. While it waits to hear back from the U.S. Food and Drug Administration, the company raised $50 million for commercial launch of the robot and then acquired the surgical robotics division of Sofar S.p.A., an Italian health care company.
Since the summer, TransEnterix shares have lost value, though that can be said of many companies, especially in health care.
The surgical robot field has potential. A recent Radiant Insights report estimates the worldwide abdominal surgical robots market will grow from $2.2 billion in 2012 to more than $10 billion by 2021.
Jason deBruyn covers the biopharmaceutical and health care industries. Follow him on Twitter @TriBizHealth or @jasondebruyn.
bizjournals.com |
